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Data Shows Programmatic Video Ad Buys On The Rise

Chocolate, which focuses on mobile video advertising, will release data next week showing the growth of programmatic advertising based on analysis from more than 166 billion ad auctions and $4
million advertising dollars.

The report -- Programmatic Mobile Video Advertising Insights for Marketers
-- also takes into consideration impressions, revenue, and eCPM data to provide analysis of key trends within the mobile advertising industry. The data is from April 1, 2018 through June 30, 2018, and
from January 1, 2018 through March 31, 2018.

Overall, the amount spent on mobile video advertising rose 41% in the second quarter of 2018 -- nearly double the industry growth between 25% and
28% per year for programmatic advertising, according to the study.

In-app video ad spend rose 38% and now accounts for 86% of total programmatic mobile video ad spend. Full-screen video ads --
the most preferred ad format -- saw 38% growth in the second quarter of 2018, according to the findings.

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Consumer product goods (CPG) and fast-moving consumer goods (FMCG), at 26%,
represent the segments that spend the most in programmatic advertising, followed by brands supporting auto at 13%, retail at 13%, technology at 9%, and entertainment at 8%.

The amount spent in
private marketplaces also rose by 62% in the second quarter of 2018.

Nearly $19 billion in new advertising dollars will enter the programmatic display space between 2018 and 2020, and the
majority will go toward private marketplaces (PMPs) and programmatic direct transactions, according to
eMarketer.

Chocolate, in the study also points to eMarketer data that estimates ad spend in the U.S. at about $12.85 billion for Private Marketplaces by 2020, contributing about 18% of the
total mobile programmatic display ad dollars spent.

Chocolate’s analysis also looked at the industry categories in which video ads are consumed mostly by smartphone users in each city.
CPG/FMCG video ads in the second quarter of 2018 at 19% were most viewed in New York, for example, whereas retail video ads at 16% and entertainment video ads at 15% are most popular in Chicago.

Weather at 21%, news at 17%, and music at 15% account for more than 50% of the total mobile video ads served. Gaming apps at 23%, weather apps at 16%, and music apps at 13% were the most preferred
app destinations for mobile video ads in the second quarter of 2018.